PURPOSE AND CONTENT OF THIS GUIDE:

To assist you to determine whether to use any of the services described herein;

This guide includes details of how we and our associations are remunerated for our services;

This guide contains details about how complaints against us will be handled.

As part of our delivery of services to you we may prepare a Statement of Advice (or a Record of Advice) and possibly provide you with one or more Product Disclosure Statements prepared by one or more product issuers. Where we prepare a Statement of Advice we will always provide you with a copy. Where a record of advice is prepared (e.g. as part of an ongoing service arrangement with you) we will keep a copy in our files and you are free to request (at no cost) a copy up to 7 years after the date of that record’s creation.

Our AUSTRALIAN FINANCIAL SERVICES LICENCE permits us to advise on and deal in the following classes of financial products:

Provide financial product advice for the following classes of financial products:

Deposit and payment products limited to:

basic deposit products

deposit products other than basic deposit products

Life products limited to:

Life risk insurance products as well as any products issued by a Registered Life Insurance Company that are backed by one or more of its statutory funds

Our AUSTRALIAN CREDIT LICENCE authorises us to engage in credit activities other than as a credit provider by:

Providing a credit service where the licensee is not or will not be:

Where the service relates to a credit contract or proposed credit contract – the credit provider under the contract; or

Where the service relates to a consumer lease or proposed consumer lease – the lessor; and/or

Performing the obligations or exercising the rights of a credit provider in relation to a credit contract or proposed credit contract under which the licensee is not or will not be the credit provider; and/or

Performing the obligations or exercising the rights of a mortgagee in relation to a mortgage or proposed mortgage that secures or will secure obligations under a credit contract under which the licensee is not the credit provider; and/or

Performing the obligations or exercising the rights of a beneficiary under a guarantee or proposed guarantee that guarantees obligations under a credit contract under which the licensee is not the credit provider; and/or

Performing the obligations or exercising the rights of a lessor in relation to a consumer lease or proposed consumer lease where the licensee is not or will not be the lessor

PRODUCTS WE MAY ADVISE YOU ABOUT THEREFORE INCLUDE:

Life Products including: Investment Life Insurance Products, and Life Risk Insurance Products

Debentures, stocks or bonds issued or proposed to be issued by a government

Home loans (first mortgage)

Home loans (subsequent mortgage)

Commercial Loans

Vehicle loans

Other personal loans

Car leases

Other consumer leases

WHO WE ACT FOR WHEN PROVIDING OUR AUTHORISED SERVICES

We act for you as our client and not for any product issuer or financial institution.

REMUNERATION FOR THOSE AUTHORISED SERVICES

UNDER OUR AUSTRALIAN FINANCIAL SERVICES LICENSE:

The cost of providing a financial product or service to you will depend on the nature and complexity of the advice, financial product and/or service provided. The payment options for the provision of financial services will be discussed with you by your adviser and are as follows:

Initial advice fee

You can pay an upfront advice fee for our services. It is simply a fee for our services. The amount of the fee depends on what you ask us to do, however it will be quoted upfront to you before we commence the work. If, as part of that of the service we provide to you, we arrange a financial product for you with an investment component, such as a personal superannuation fund or a managed investment, you may have the option to authorise our fee to be deducted from your fund balance.

Ongoing advice / implementation fees

We charge ongoing fees for ongoing advice services and/or implementation of our advice. This will be either a percentage-based commission (calculated as a % of your total fund balance) or a fixed dollar amount paid from your fund balance. These amounts are usually paid monthly to the Licensee. Any ongoing fee arrangement that lasts longer than 12 months will be subject to annual written fee disclosure.

Insurance Commissions

We accept insurance commissions from insurance companies for policies that we arrange on your behalf. These commissions are paid directly to the Licensee and consist of upfront payment and ongoing renewal commission for as long as your policy stays in force.

For example, if you are paying a ‘stepped premium’ for your policy, an initial commission of between 100 – 130% of your first year premium will be paid when your policy is established; and ongoing renewal commission of between 10 – 12% is paid on subsequent year premiums (there are one or two exceptions where renewal commission is higher than this). If you pay a ‘level premium’ for your policy, the first year commission and subsequent year commissions are generally between 27 – 33% of the premium paid each year (again there are one or two exceptions where the annual commission rate is higher than this).

For example, on an insurance premium of $1,000 paying 110% initial commission and 10% on-going commission, the upfront commission would be $1100 and the on-going commission $100 per year.

A combination of the payment methods

You are able to pay for your advice by a combination of methods set out above. Your adviser will discuss this with you.

UNDER OUR AUSTRALIAN CREDIT LICENSE:

We are paid commissions by lenders for introducing customers. The lenders we deal with will usually pay us a commission based on the size of loan AND the particular loan product you have selected.

We will only be paid this commission if your loan is settled and drawn down.

We may also be paid an ongoing commission by your lender based on the outstanding balance of your loan.

The commissions that we are paid by your lender are not payable by you – they are paid to us either directly by the lender, or paid to us by our Aggregator.

If you would like a detailed estimate of how much commission we would be paid by a particular lender for a particular product, we will provide this for you. We will also provide you with a detailed explanation of how this commission is calculated.

Certain lenders may also pay us a bonus based on the amount of business that we introduce to them. This information will be provided to you.

FEES AND CHARGES THAT ARE PAYABLE BY YOU IN RELATION TO OUR CREDIT ASSISTANCE

We sometimes charge a fee for our services. More details about the fees payable by you will be set out in a quote which we will give you before a finance application is lodged. You may obtain from us information about how these fees and charges are worked out and a reasonable estimate of those fees.

OTHER PEOPLE WE DEAL WITH:

OUR AGGREGATOR

We have approval to utilise credit providers and their loan products through the services of our aggregator ‘Connective Broker Services Pty Ltd ABN 77 161 731 111, Credit Representative 437202 is authorised under Australian Credit Licence 389328’. The aggregator charges us a fee depending on our contract arrangements, consisting of:

A share of commission that is paid by the particular credit provider

A membership fee for our business

A monthly fee for each of our accredited loan writers.

REFERRAL ARRANGEMENTS

Where you have been referred to your adviser by someone else, your adviser may pay that person a fee or commission in relation to the referral. If that happens, the adviser will tell you in the appropriate Statement of Advice or Record of Advice who will receive that fee or commission and the amount that they will receive. Referral payments are not an additional charge to you.

ASSOCIATIONS WITH ISSUERS OF FINANCIAL PRODUCTS

We do not have any relationships or associations with any Financial Services Product issuers. The company has no ownership ties with any life companies, financial institutions or banks which might reasonably be expected to be capable of influencing us in the provision of services.

SPECIAL INSTRUCTIONS YOU CAN PROVIDE TO US

You may give your instructions to your adviser during meetings, by telephone, fax or other means such as e‐mail. In all cases, your verbal instructions and any agreements reached at meetings or during telephone calls will be recorded on your file as file notes. In many cases (e.g. a change to an investment or insurance policy, an alteration of remuneration, a transaction request) you will be asked written confirmation of your verbal instructions to your adviser. You may also be required to complete and return certain documents.

Please note that:

Our advisers (authorised representatives) are not allowed to be an “attorney” in a Power of Attorney on behalf of any client.

Our advisers (authorised representatives) are not allowed to hold a discretionary authority to transact on your behalf. This means that you must provide your written authority to your adviser each and every time you want a transaction executed

DISPUTES HANDLING

Whilst we always strive to provide the best possible service, we understand that there may be times where you are not satisfied. If this occurs, and you wish us to do something about it, we have a formal process in place to address your concerns.

INTERNAL DISPUTES RESOLUTION:

If you do have a complaint, please contact the Complaints Office using the details at the start of this document. If you choose to contact us by email, please make sure you include as much information as you can.

You should explain the details of your complaint as clearly as you can. You may do this verbally or in writing. When we receive a complaint, we will attempt to resolve it promptly.

EXTERNAL DISPUTES RESOLUTION

If you are not satisfied with how we have handled your complaint, you may make a formal complaint to our External Dispute Resolution Scheme Provider.

We are a financial member of the Credit Ombudsman Service Ltd, an ASIC approved External Disputes Resolution scheme.

COSL can be reached at 1800 138 442.

COSL mail address: PO Box A252 South Sydney NSW 1235

COSL website is www.cosl.com.au

COMPENSATION ARRANGEMENTS

We believe we have put in place compensation arrangements (via maintenance of professional indemnity insurance and adequate financial provision for any policy excess) that are adequate having regard to the size, nature and complexity of our business. We believe that these arrangements are sufficient for the purpose of meeting our compliance obligations under section 912B of the Corporations Act.